Closures: Fibrant to shut down caprolactam facility in Netherlands; Kraton ceases production of HSBCs in France

Dutch firm Fibrant BV, which ispart of Highsun Group China, says it plans to permanently close its caprolactam plant at Geleen, Netherlands. This decision is driven by high production costs and competition from Asia, resulting in the loss of approximately 100 jobs.

The move will also impact the site’s ammonium sulphate unit and all caprolactam-related activities, Fibrant said. Three out of seven production units at the site will be affected, the company said.

The company said that despite previous cost-saving measures, the financial challenges it faces have proved insurmountable, prompting management to seek solutions that ensure the company's long-term viability.

The move is expected to have ripple effects across the Chemelot industrial cluster since Fibrant is a major off-taker of critical raw materials, such as hydrogen, from neighbouring companies like Sabic and OCI.

Fibrant has been a major caprolactam producer in Europe, with a capacity of approximately 135,000 tonnes/year at Geleen using the phenol route.

Fibrant is also the world’s biggest producer of caprolactam and ammonium sulphate, according to its website. The company has production facilities at Fuzhou and Nanjing, China as well as Geleen. It also produces cyclohexanone and nylon 6.

In other news, US-based Kraton Corp., a producer of specialty polymers and biobased products derived from pine chemicals, is streamlining its polymers operations in Berre, France. It will solely focus on producing unhydrogenated styrenic block copolymers (USBC) products in that location, ceasing production of hydrogenated styrenic block copolymers (HSBC) products.

The company recently launched an information and consultation period with the relevant Works Councils in Berre. A final decision regarding the plan could be taken at the end of the mandatory consultation period.

“Our aim with this plan is to strengthen Kraton’s long-term competitive position by optimising our manufacturing footprint in response to changing market dynamics associated with global overcapacity of HSBC production capability,” said Prakash Kolluri, President, Kraton Polymers.

With operations across multiple continents and a diverse portfolio of solutions, Kraton will adds it will continue to deliver market-driven innovation and leverage the strength and flexibility of its global footprint to adapt quickly to market shifts and customer needs.

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